The traditional way of doing business will not serve you or suffice in 2021.
Someone needed to read that. If 2020 hasn’t forced you to pivot yet, then 2021 certainly will. Slated for another round of uncertainty, the Coronavirus pandemic could cause businesses already on the brink to topple (if they haven’t already).
Have you shifted your business strategy to adapt to the uncertain economic conditions we will face next year? As you finalize your business plan for 2021, be sure to define how you will innovate and expand your business, especially in the areas of the 5 Ps, i.e., People, Price, Promotion, Product, and Place.
Right now at The Kool Source, we are collectively reading Blue Ocean Strategy. Written for strategic business owners, this book instructs readers on how to create uncontested market space and make competition irrelevant. Blue Ocean Strategy makes the claim that “to win in the future, companies must stop competing with each other. The only way to beat the competition is to stop trying to beat the competition.”
They are referring to innovating into unknown market spaces. This is similar to the concept of “creating your own lane” for businesses, or “building your own table” when talking to entrepreneurs.
The authors stress that companies make a critical error when they aim to best the competition instead of creating their own lane. They speak of fighting over lost market share and diminishing profits for those that cut prices to cut competition. To bring the Blue Ocean approach to your 2021 strategy, incorporate these three qualities: focus, divergence, and a compelling tagline or message.
Here are 3 questions to consider when planning your strategy:
- What is one area that we can focus on improving and innovating that will bring noticeable value to our customers?
- How can we divert our current approach or strategy to better meet the newly expressed needs of our customers?
- How will we communicate these new services and benefits to the right people?
Whether it is an innovation or product extension, what new experience will you bring to the table for your customers in 2021? If that is something you want to talk through with experts, we can help you with that. We build brands and make sure that they get visible, found, and paid.
This article references tips from the International Best-Selling book Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne.